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nlexa [21]
2 years ago
4

Molly Ellen, bookkeeper for Keystone Company, forgot to send in the payroll taxes due on April 15. She sent the payment November

8. The IRS sent her a penalty charge of 10.80% simple interest on the unpaid taxes of $5,600. Calculate the penalty. (Remember that the government uses exact interest.) (Use Days in a year table) (Do not round intermediate calculations. Round your answer to the nearest cent.)
Mathematics
1 answer:
pochemuha2 years ago
4 0

Answer:

  • $342.99

Step-by-step explanation:

<h3>Given</h3>
  • Penalty charge = 10.80% simple
  • Interest amount = $5600
  • Period = April 15 to November 8
<h3>To find</h3>
  • Amount of penalty
<h3>Solution</h3>

<u>Formula</u>

  • Penalty = Interest amount*penalty charge*time

<u>Time period</u>

  • April 15 = 105
  • November 8 = 322
  • Difference = 322 - 105 = 207 days

<u>Calculation of penalty</u>

  • $5600*0.108*207/365 = $342.99
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